Fair value, page-43

Morning Guys,

It's always difficult to rationalise the price machinations in the ST. However, as Kate has stated, the story will always "out" in the end.

It could be a case of Acorn raising its cash % in anticipation of general market vol in the coming weeks/ months and the surge in Zn has provided the liquidity in RVR to exit or downsize its position.

The quality of the project and possible life extensions will drive the valuation LT, provided the commodity prices don't crash.

Operationally, if I was management, I would be looking to include as much marginal ore as possible into the mine management plan now and run the plant at a higher capacity than the Start Up Plan provided for given that Zn prices are at decade highs and trending higher.

Whilst this would reduce the head grade to the mill in the ST it could potentially increase the LOM considerably in a reverse high-grading process.

There is a current opportunity, that may be temporary, to economically extract a lot of the lower grade halo ore that, if left in-situ now, may not be economic to extract at a later date if/ when commodity prices reverse.

This would also derisk the project somewhat - leaving higher grade ore for later in case the commodity prices tank and increasing the current LOM without having to find new reserves (which I think they will).

I'm happy holding and admit that I bought a lot of the Acorn shares recently offered.

Cheers
John